Labour rates

This topic cropped up in the UKW subscribers forum and I thought it was something that really should be discussed by everyone.

When considering the subject of what is a fair rate for repairers to charge we immediately hit the problem, of:

(a) Your geographic location
(b) Whether you work for yourself or employ others?
(c) What you actually repair

Of course other factors do come into the equation such as do you work from home or have premises? Are you a one man band or do you employ others? And the actual overheads you have to cover before you start making a wage.

With regard to the geographical location we are all aware of the differing cost of living throughout the UK are also the effect that high unemployment and living on basic pay have on the customers ability to pay for repairs against the ease of buying a new appliance on credit, so in effect to the customer it is easier to pay £12 a month for a new appliance than having to find say £80 in one go to have a repair done, and considering that the majority of the appliances in these type of homes are of the cheaper brands it is not at all surprising that they plum for the £12 a month option.

The same repair call to a one man band could in fact become a successful job because with minimum overheads he would possibly be able to cut the charge by 50 percent and everyone is happy except of course the repairer who’s prices had to be higher due to his higher overheads.

The cost of setting yourself up in this business can range from nothing to a few thousand pound depending on how you wish to proceed, an engineer leaving employment to start his own business can in fact with a little planning be earning from day one if his intention is to work from home, the engineer who decides to open a shop in order to establish a place of work and to get the passing trade will face greater problem in the beginning due to having to find the rent, rates, electric, phone and stock plus someone to mind the shop while he is out earning the money so naturally he has to have a minimum rate to start with. The next step on the ladder is those who employ others, these are the ones who really have to have some kind of contract work be it profitable or just break even because they have to pay the wages whether or not their engineers work, plus the higher cost of administration, vehicles and stock so they definitely need a minimum rate.

So when we look at these three differing types of business we can see that the idea of a minimum labour charge across the board is not really feasible or indeed practical.

The only exception is contract work, whether it is letting agents, WP’s or manufactures, in this area a minimum rate is desirable and is worth working towards for those who are able to get this type of work but it does not suit everyone and I feel we all have our own niche to fill.

Richard Scanlon Snr